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The Ministry of Economic Affairs (MOEA) issued a ruling clarifying the method of notifying shareholders upon adoption of a resolution approving a share swap under the Business Mergers and Acquisitions Act

On March 22, 2016, the Ministry of Economic Affairs (MOEA) issued a ruling stating that, according to the Business Mergers and Acquisitions Act, after the adoption of a resolution approving a share swap, a company shall, 30 days before the record date of the share swap, give public notice thereof and notify each shareholder and each pledgee of shareholders as registered in the shareholders’ roster. Such notice shall include the following matters: (1) the main points of the resolution adopted by the shareholders' meeting or the Board of Directors, (2) that the transfer of shares shall be effected on the record date of the share swap, and (3) that shareholders shall file their shares with the company one day before the record date of the share swap, and that those shares not filed shall become null and void. Where shares of listed companies, or of companies with shares deposited with the Taiwan Depository & Clearing Corporation, are not in circulation and otherwise have no impact on shareholders’ rights, such companies may notify shareholders of the share swap by way of public notice only.